CHAPTER 66

An Act validating the creation of the Hampton Roads Sanitation District,
the appointment of the present members of the Hampton Roads Sanita-
tion District Commission and all outstanding bonds issued by the
Commission; authorizing the Commission to construct, vmprove, ex-
tend, maintain, repair and operate a sewerage system, to issue revenue
bonds, notes or other obligations of the District, payable solely from
the special funds provided by this act, for any of its authorized pur-
poses, and to fix, revise, charge and collect rates, fees and other
charges for the use of the sewerage system; providing that such
obligations and such charges are subject to the approval of the State
Corporation Commission; providing for the collection and enforcement
of such charges; granting to the Commission power to acquire neces-
sary real and personal property and to exercise the right of eminent
domain; authorizing the Commission to restrain, enjoin or otherwise
prevent the pollution of any waters within the District; providing
that no debt of the Commonwealth or of any political subdivision
thereof shall be incurred in the exercise of any of the powers granted
by this act; exempting from taxes and assessments such sewerage
system and such obligations and the income therefrom; providing for
the addition of territory to the District; describing the powers and
duties of the Commission in connection with the foregoing and the
rights and remedies of the holders of such obligations issued under the
provisions of this act; and to repeal certain acts. CH 1011

Approved February 23, 1960

Be it enacted by the General Assembly of Virginia:
1. § 1. The creation of the Hampton Roads Sanitation District is hereby
ratified, validated and confirmed, and said District shall embrace all the
territory within the cities of Hampton, Newport News, Norfolk and South
Norfolk, that portion of Princess Anne County contained in Lynnhaven
Magisterial District, Bayside Magisterial District and Kempsville Magis-
terial District, that portion of Norfolk County contained in Washington
Magisterial District, Western Branch Magisterial District and that part
of Deep Creek Magisterial District north of Herron Ditch and of a line
extending due west from its junction with Deep Creek Canal, that portion
of Isle of Wight County, other than the Town of Smithfield, contained in
Newport Magisterial District and Hardy Magisterial District, and that
portion of Nansemond County contained in Sleepy Hole Magisterial
District and Chuckatuck Magisterial District, all as said cities and magis-
terial districts existed on December 30, 1959, provided the territory an-
nexed to the city of Portsmouth, effective January 1, 1960, shall cease to
be a part of the district, and provided, that all rights of the Commissior
and its bondholders shall remain unchanged by such annexation until
adjudicated by a court of competent jurisdiction; and provided, further,
that any one affected may petition such court or the State Corporation
Commission to fix and determine the fair market value of the facilities of
the Commission within the annexed area; said Corporation Commission
being hereby authorized and directed to then make such determination.
Territory may be added to the District as hereinafter provided in this act.

For the purpose of this section the territory of a county included
within the District shall include all the territory lying within the bound-
aries of any town in the county.

Said District shall constitute a political subdivision of the Common-
wealth established as a governmental instrumentality to provide for the
public health and welfare. ;

§ 2. The functions, affairs and property of the Hampton Roads Sani-
tation District shall be managed and controlled by a commission, known as
the “Hampton Roads Sanitation District Commission”, consisting of five
members appointed by the Governor. The appointment of each of the
present members of said Commission, consisting of E. T. Gresham, whose
term expires on June 7, 1963, J. C. Morris, whose term expires on June 7,
1962, Clark R. Nickerson, whose term expires on June 7, 1960, Robert F.
Ripley, whose term expires on June 7, 1962, and G. A. Treakle, whose term
expires on June 7, 1961, is hereby ratified, validated and confirmed. Said
persons are hereby declared to be the lawfully constituted members of the
Commission and the term of each such member shall continue until his
successor shall be duly appointed and qualified. The successor of each such
member shall be appointed for a term of four years and until his successor
shall be duly appointed and qualified, except that any person appointed to
fill a vacancy shall serve only for the unexpired term. Any member of the
Commission shall be eligible for reappointment without limitation as to
the number of terms that may be served. Members of the Commission may
be suspended or removed by the Governor at his pleasure.

At the time of their appointment, two of the members of the Com-
mission, and each of their successors, shall be residents of the territory
in the District within the City of Norfolk or Princess Anne County, one of
the members, and each of his successors, shall be residents of the territory
in the District within the City of Newport News, one of the members, and
each of his successors, shall be residents of the territory in the District
within the City of Hampton, and one of the members, and each of his
successors, shall be residents of the territory in the District within the
City of South Norfolk or the counties of Isle of Wight, Nansemond or
Norfolk. Any member who shall cease to reside within the territory from
which he was appointed shall thereupon be disqualified from holding office
as a member of the Commission and the vacancy thus created shall be filled
by appointment by the Governor for the balance of the unexpired term.

§ 3. The Commission shall annually elect one of its members as
chairman and another as vice chairman. The Commission shall appoint a
secretary, who may or may not be a member of the Commission, and a
treasurer, who shall not be a member of the Commission. The compen-
sation of the secretary and of the treasurer shall be fixed by the Com-
mission. The secretary and the treasurer shall serve at the pleasure of the
Commission.

The secretary shall keep a record of the proceedings of the Commis-
sion and shall be custodian of all books, documents and papers filed with
the Commission and of the minute book or journal of the Commission and
of its official seal. He shall have authority to cause copies to be made of
all minutes and other records and documents of the Commission and to
give certificates under the official seal of the Commission to the effect that
such copies are true copies, and all persons dealing with the Commissio)
may rely upon such certificates.

Three members of the Commission shall constitute a quorum and th
affirmative vote of three members shall be necessary for any action take!
by the Commission. No vacancy in the membership of the Commissio}
shall impair the right of a quorum to exercise all the rights and perforn
all the duties of the Commission. —

§ 4. Each member of the Commission shall, before entering upon th:
discharge of his duties, take and subscribe the oath of office required b}
§ 34 of the Constitution of Virginia, and give bond payable to the Distric
in form approved by the Attorney General, in such penalty as shall be
fixed from time to time by the Governor, with some surety or guaranty}
company duly authorized to do business in the Commonwealth and ap
proved by the Governor, as security, conditioned upon the faithful dis.
charge of his duties. The premium of such bonds shall be paid by the
Commission.

§ 5. The members of the Commission shall receive no salary, but
shall be paid their necessary traveling and other expenses incurred in at-
tendance upon meetings of the Commission or while otherwise engaged
in the discharge of their duties and the same sum per diem for each day
or portion thereof in which they are engaged in the performance of such
duties as is paid the members of the State Highway Commission.

§ 6. Regular meetings of the Commission shall be held at least once
every month at such time and place as the Commission shall from time
to time prescribe. Special meetings of the Commission shall be held upon
one day’s mailed notice, or actual notice otherwise given, to each member
of the Commission upon call of the chairman or of any two members of
the Commission, at such time and at such place within the District as such
notice may specify, or at such other time and place with or without notice
as all of the members of the Commission may expressly approve.

§ 7. All bonds heretofore issued by the Commission which are now
outstanding are hereby ratified, validated and confirmed, and all acts and
proceedings heretofore taken in connection with the authorization and
issuance of said bonds are hereby ratified, validated and confirmed and
said bonds shall constitute valid obligations of the District.

§ 8. As used in this act the following words and terms shall have the
following meanings, unless the context shall indicate another or different
meaning or intent: ;

(a) The word “District” means the Hampton Roads Sanitation Dis-
‘rict hereinabove mentioned.

(b) The word “Commission” means the Hampton Roads Sanitation
District Commission hereinabove mentioned, or if said Commission shall
9e abolished, the board, body, commission or agency succeeding to the
principal functions thereof or upon whom the powers given by this act to
said Commission shall be conferred by law.

(c) The word “sewage” means the water-carried wastes created
n and carried, or to be carried, away from residences, hotels, schools,
1ospitals, industrial establishments, commercial establishments or any
ther private or public building, together with such industrial wastes as
nay be present.

(d) The term “industrial wastes” means liquid or other wastes result-
ng from any processes of industry, manufacture, trade or business or from
he development of any natural resource.

(e) The term “sewage disposal system” means and shall include any
lant, system, facility or property used or useful or having the present
apacity for future use in connection with the collection, treatment, puri-
ication or disposal of sewage, including industrial wastes, or any integral
art thereof, and, without limiting the generality of the foresoine defini.
tion, shall embrace treatment plants, pumping stations, intercepting sewers
pressure lines, mains and all necessary appurtenances and equipment, anc
shall include all lands, property, rights, rights of way, easements anc
franchises relating to any such system and deemed necessary or con.
venient for the operation thereof. . (
The term “sewer improvements” shall embrace sewer mains an
laterals for the reception of sewage from premises connected therewith anc
carrying such sewage to a sewage disposal system.

(g) The term “sewerage system” shall embrace sewage disposal sys:
tems, sewer improvements and all other real and personal property oper-
ated by the Commission for the purposes of this act. _

(h) The word “cost” as applied to a sewage disposal system or to
extensions or additions thereto or to sewer improvements shall include the
cost of construction, the cost of all labor, materials, machinery and equip-
ment, the cost of all lands, property, rights, rights of way, easements and
franchises acquired, financing charges, interest prior to and during con-
struction and, if deemed advisable by the Commission, for one year after
completion of construction, cost of plans and ‘specifications, surveys and
estimates of cost and of revenues, cost of engineering and legal services,
provisions for working capital and a reserve for interest, and all other
expenses necessary or incident to determining the feasibility or practica-
bility of such construction, administrative expense and such other expenses
as may be necessary or incident to the financing herein authorized. _

(i) The word “owner” shall include all individuals, copartnerships,
associations or corporations and also counties, cities, towns and other
political subdivisions and all public agencies and instrumentalities.

(j) The word “bonds” or the words “revenue bonds” shall embrace
revenue bonds, notes and other obligations of the District issued under the
provisions of this act. _. .

(k) The word “pollution” means the condition of water resulting
directly or indirectly from any of the following acts:

(1) contaminating such water;

(2) rendering such water unclean or impure;

(3) rendering such water injurious to public health, or unfit for
public use;

(4) rendering such water harmful for cattle, stock or other animals;

(5) rendering such water deleterious to, or unfit for, fish or shellfish,
or ish or shellfish propagation, or aquatic animals, or plant life in such
water;

(6) rendering such water unfit for commercial use: or

(7) rendering such water harmful to fish or shellfish used for human
consumption.

§ 9. Revenue bonds issued under the provisions of this act shall
not be deemed to constitute a debt of the Commonwealth of Virginia or
of any county, city, town or political subdivision thereof, or a pledge of
the faith and credit of the Commonwealth or of any county, city, town or
political subdivision thereof, but such bonds shall be payable solely from
che funds herein provided therefor from revenues. The issuance of revenue
oonds under the provisions of this act shall not directly or indirectly or
contingently obligate the Commonwealth or any county, city, town or
oolitical subdivision thereof to levy or to pledge any form of taxation
whatever therefor. All such revenue bonds shall contain a statement on
heir face substantially to the foregoing effect.

All expenses incurred in carrying out the provisions of this act shall
ye payable solely from funds provided under the provisions of this act
ind no liability or obligation shall be incurred by the Commission here-
inder beyond the extent to which moneys shall have been provided under
he provisions of this act.
10. The Commission is hereby authorized and empowered:

ta) to adopt bylaws and to make rules and regulations for the
management of its affairs and the conduct of its business;

(b) to adopt an vegies seal and alter the same at pleasure;

c) to sue and to be sued; .

(4) to construct, and to improve, extend, enlarge, reconstruct, arcane
tain, equip, repair and operate a sewage disposal system or systems, : a
within or without or partly within and partly without the corporate lim)
of the District, and to construct sewer improvements within the corporate
limits of the District; oo, . a

(e) to issue revenue bonds, notes or other obligations of the District
for any of its authorized purposes, payable solely from the special funds
provided under the authority of this act and pledged for their payment,
all as provided in this act; ;

(f) to fix and collect rates, fees and other charges for the services
and facilities furnished by any such sewage disposal system or sewer
improvements, and to fix and collect charges for making connections with
any such system or improvements;

(g) to acquire in the name of the District, either by purchase, lease,
grant, or the exercise of the right of eminent domain, such lands, struc-
tures, property, rights, rights of way, easements, franchises and other
interests in or relating to lands, including lands under water and riparian
rights, and to acquire such personal property, as it may deem necessary
in connection with the construction, improvement, extension, enlargement
or operation of any sewage disposal system or sewer improvements, and to
hold and dispose of all real and personal property under its control;

(h) to employ, in its discretion, consulting engineers, attorneys,
accountants, construction and financial experts, managers, and such other
Officers, employees and agents as may be necessary in its judgment, and
to fix their compensation;

_ (i) to exercise jurisdiction, control and supervision over any sewage
disposal system or systems or sewer improvements operated or maintained
by the Commission and to make and enforce such rules and regulations
for the maintenance and operation of any such sewage disposal system
or systems or sewer improvements as may, in the judgment of the Com-
mission, be necessary or desirable for the efficient operation of any such
system or improvements and for accomplishing the purposes of this act;

(j) to enter on any lands, water or premises located within or without
the District to make surveys, borings, soundings or examinations for the
purposes of this act;

(k) to construct and operate trunk, intercepting or outlet sewers,
sewer mains, laterals, conduits or pipelines in, along or under any streets,
alleys, highways or other public places within or without the District; in
so constructing its facilities, it shall see that the public use of such streets,
alleys, highways, and other public places is not unnecessarily interrupted
or interfered with and that such streets, alleys, highways and other public
places are restored to their former usefulness and condition within a
reasonable time; to this end the Commission shall cooperate with the State
Highway Commission and the appropriate officers of the respective
counties, cities and towns having an interest in such matters:

(1) to restrain, enjoin or otherwise prevent any county, city, town or
political subdivision and any person or corporation, public or private,
from discharging into any waters within the District, any sewage, in-
dustrial wastes or other refuse which would contribute or tend to contribute
to the pollution of such waters, and to restrain, enjoin or otherwise prevent
the violation of any provision of this act or of any resolution, rule or
regulation adopted pursuant to the powers granted by this act:

(m) to use and connect with any sewage disposal system or sewer
improvement within the District and, if deemed necessary by the Com-
mission, to close off and seal any outlets and outfalls therefrom ;

(n) subject to such provisions and restrictions as may be set forth
in the resolution authorizing any revenue bonds or in the trust agreement
hereinafter mentioned securing the same, to enter into contracts with the
United States of America or any agency or instrumentality thereof, or
with any county, city, town or political subdivision or any sanitary district,
private corporation, copartnership, association or individual providing
for or relating to the treatment and disposal of sewage;

(0) to receive and accept from the United States of America or any
agency or instrumentality thereof grants for or in aid of the planning,
construction or financing of any sewage disposal system or sewer im-
provements, and to receive and accept contributions from any source of
either money, property, labor or other things of value, to be held, used and
applied only for the purposes for which such grants and contributions
may be made;

(p) to make and enter into all contracts and agreements necessary
or incidental to the performance of its duties and the execution of its
powers under this act;

(q) to do and perform any acts and things authorized by this act
under, through or by means of its own officers, agents and employees, or by
contracts with any persons; and

(r) to execute any and all instruments and do and perform any and
all acts or things necessary, convenient or desirable for the purposes of the
Commission or to carry out the powers expressly given in this act.

§ 11. (a) The Commission is hereby authorized and empowered to
acquire by purchase, lease, grant or conveyance such lands, structures,
property, rights, rights of way, easements, franchises and other interests
in or relating to lands, including lands lying under water and riparian
rights, as it may deem necessary or convenient for the construction and
operation of any sewage disposal system or sewer improvements, upon
such terms and at such prices as may be considered by it to be reasonable
and can be agreed upon between it and the owner thereof.

All public agencies and commissions of the Commonwealth with the
approval of the Governor and all counties, cities, towns and political
subdivisions, notwithstanding any contrary provision of law, are hereby
authorized and empowered to lease, lend, grant or convey to the District
at the request of the Commission upon such terms and conditions as may be
mutually agreed upon, without the necessity for any advertisement, order
of court or other action or formality, any real property which may be
necessary or convenient to the effectuation of the authorized purposes of
the Commission, including public highways and other real property already
devoted to public use.

(b) The powers of condemnation or eminent domain conferred on
the Commission by this act shall be exercised by the Commission pursuant
to the provisions of Chapter 1, Title 25, Code of Virginia, 1950, as amended,
to the extent that such provisions may be applicable, and subject to the
provisions of § 25-233 of said Code.

(c) Title to any property acquired by the Commission shall be taken
in the name of the District.

(d) The Commonwealth with the approval of the Governor hereby
consents to the use of any lands or property owned by the Commonwealth,
including lands lying under water, which are deemed by the Commission
to be necessary for the construction or operation of any sewage disposal
system or sewer improvements.

§ 12. The Commission is hereby authorized to provide by resolution
for the issuance, at one time or from time to time, of revenue bonds of
the District for any one or more of the following purposes:
(a) refunding any bonds heretofore issued by the Commission and
any revenue bonds, notes and other obligations issued under the provisions
of this act and then outstanding, including the payment of any redemp-
tion premium thereon and any interest accrued or to accrue to the date
of redemption thereof; provided, however, that no bonds issued after the
effective date of this act shall be refunded at a net interest cost exceeding
that of such bonds to be refunded,

(b) paying the cost of a sewage disposal system or systems,

(c) paying the cost of extensions and additions thereto, and

(d) paying the cost of sewer improvements.

§ 13. The principal of and the interest on revenue bonds issued
under the provisions of this act shall be payable solely from the funds
therein provided for such payment. The bonds of each issue shall be dated,
shall bear interest at such rate or rates not exceeding six per centum
(6%) per annum, shall mature at such time or times not exceeding forty
years from their date or dates, as may be determined by the Commission,
and may be made redeemable before maturity, at the option of the Com-
mission, at such price or prices and under such terms and conditions as
may be fixed by the Commission prior to the issuance of the bonds;
provided, however, that any bonds of more than ten years maturity shall
be made redeemable before maturity, at the option of the Commission, at
such price or prices and under such term and conditions as may be fixed
by the Commission prior to the issuance of the bonds. The Commis-
sion shall determine the form and the manner of execution of the bonds,
including any interest coupons to be attached thereto, and shall fix the
denomination or denominations of the bonds and the place or places
of payment of principal and interest, which may be at any bank or trust
company within or without the Commonwealth. In case any officer whose
signature or a facsimile of whose signature shall appear on any bonds
or coupons shall cease to be such officer before the delivery of such bonds,
such signature or such facsimile shall nevertheless be valid and sufficient
for all purposes the same as if he had remained in office until such
delivery, and any bond may bear the facsimile signature of, or may be
signed by, such person or persons as at the actual time of the execution
of such bond shall be the proper officer or officers to sign such bond
although at the date of such bond such person or persons may not have
been such officer or officers. Notwithstanding any other provisions of this
act or any recitals in any bonds issued under the provisions of this act,
all such bonds shall be deemed to be negotiable instruments under the
laws of the Commonwealth. The bonds may be issued in coupon or in
registered form, or both, as the Commission may determine, and provision
may be made for the registration of any coupon bonds as to principal
alone and also as to both principal and interest, for the reconversion into
coupon bonds of any bonds registered as to both principal and interest,
and for the interchange of registered and coupon bonds. The Commission
may sell such bonds in such manner, either at public or private sale, and
for such price, as it may determine to be for the best interests of the
District, but no such sale shall be made at a price so low as to require the
payment of interest on the money received therefor at more than six per
centum (6%) per annum, computed with relation to the absolute maturity
or maturities of the bonds in accordance with standard tables of bond
values excluding, however, from such computation, the amount of any
premium to be paid on the redemption of any bonds prior to maturity.

§ 14. The proceeds of the bonds shall be disbursed in such manner
and under such restrictions, if any, as the Commission may provide in the
resolution authorizing the issuance of such bonds or in the trust agree-
ment hereinafter mentioned securing the same. Such resolution or trust
agreement may also contain such limitations upon the issuance of addi-
tional revenue bonds, and such provisions for accelerating the maturities
of the bonds in the event of a default and for amending or supplementing
such resolution or trust agreement, as the Commission may deem proper.

Prior to the preparation of definitive bonds, the Commission
may, under like restrictions, issue interim receipts or temporary bonds,
with or without coupons, exchangeable for definitive bonds when such
bonds shall have been executed and are available for delivery. The Com-
mission may also provide for the replacement of any bonds which shall
become mutilated or shall be destroyed or lost.

§ 16. Except as hereinafter provided in this act, bonds may be
issued under the provisions of this act without obtaining the consent or
approval of any department, division, commission, board, bureau or
agency of the Commonwealth or of any district or other political sub-
division of the Commonwealth, and without any other proceedings or the
happening of any other conditions or things than those proceedings, con-
ditions or things which are specifically required by this act. —

8 17. It shall not be necessary to secure the approval by a majority
vote of the qualified voters of the District voting in an election on the
question of the issuance of any of such revenue bonds, and none of the
limitations, restrictions or conditions which are contained in any other
law on the amount of bonds or the manner of issuing bonds shall be
applicable to revenue bonds issued under the provisions of this act.

§ 18. Neither the members of the Commission nor any person exe-
cuting any bonds or temporary bonds shall be liable personally on the
bonds or temporary bonds or be subject to any personal liability or
accountability by reason of the issuance thereof.

§ 19. In addition to all other powers granted to the Commission by
this act, the Commission is hereby authorized and empowered to provide
for the issuance at one time or from time to time of notes or other obliga-
tions of the District, payable solely from revenues or other funds of the
District, for any of its authorized purposes. All the provisions of this act
which relate to bonds or revenue bonds shall apply to such notes or other
obligations in so far as such provisions may be appropriate.

§ 20. The issuance of bonds, secured by a trust agreement under the
provisions of this act shall be subject to the approval of the State Corpo-
ration Commission. If the State Corporation Commission shall not enter
an order approving or disapproving the issuance of such bonds within
sixty days after the Commission shall have filed the resolution authoriz-
ing the issuance of such bonds or the trust agreement hereinafter men-
tioned securing the same with the State Corporation Commission, the
issuance of the bonds shall be deemed to have been approved by the State
Corporation Commission for the purpose of this paragraph. If the State
Corporation Commission shall enter an order within such sixty day period
disapproving the issuance of such bonds, the Commission may at any time
thereafter file a new or revised resolution or trust agreement for the
purpose of securing the approval of the State Corporation Commission
of the new or revised bonds of the District.

§ 21. In the discretion of the Commission the revenue bonds of any
issue may be secured by a trust agreement by and between the Commis-
sion and a corporate trustee, which may be any trust company or bank
having the powers of a trust company within or without the Common-
wealth. Any such trust agreement or the resolution providing for the
issuance of such bonds may pledge or assign the revenues to be received,
but shall not convey or mortgage any sewage disposal system or sewer
improvements or any part thereof. Any such trust agreement or resolu-
tion providing for the issuance of such bonds may contain such provi-
sions for protecting and enforcing the rights and remedies of the bond-
holders as may be reasonable and proper and not in violation of law,
including covenants setting forth the duties of the Commission in relation
to the acquisition of property and the construction, improvement, exten-
sion, enlargement, reconstruction, maintenance, equipment, repair, opera-
tion and insurance of the properties of the District, and the custody, safe-
guarding and application of all moneys. Any such trust agreement may
provide for or permit the issuance of additional bonds from time to time
for the further extension of the sewerage system. It shall be lawful for any
bank or trust company incorporated under the laws of the Commonwealth
which may act as depositary of the proceeds of bonds or of revenues to
furnish such indemnifying bonds or to pledge such securities as may be
required by the Commission. Any such trust agreement may set forth the
rights and remedies of the bondholders and of the trustee, and may
restrict the individual right of action by bondholders. In addition to the
foregoing, any such trust agreement or resolution may contain such other
provisions as the Commission may deem reasonable and proper for the
security of the bondholders. All expenses incurred in carrying out the
provisions of any such trust agreement or resolution may be treated as a
part of the cost of operation.

No such trust agreement or resolution need be filed or recorded except
in the records of the Commission.

The Commission shall, in the resolution providing for the
issuance of revenue bonds or in the trust agreement securing the same,
fix the schedule of rates, fees and other charges for the use of, and for the
services and facilities furnished or to be furnished by, the sewage disposal
system or systems and the sewer improvements, if any, for which such
bonds are to be issued, to be paid by the owner, tenant or occupant of each
lot or parcel of land which may be connected with or may use any such
sewage disposal system or sewer improvements. The Commission may
revise such schedule of rates, fees and charges from time to time. Such
rates, fees and charges shall be so fixed and revised as to provide funds,
with other funds available for such purposes, sufficient at all times (a) to
pay the cost of maintaining, repairing and operating such sewage disposal
system or systems and such sewer improvements, if any, including
reserves for such purpose and for renewals and replacements and neces-
sary extensions and additions to the sewerage system, (b) to pay the prin-
cipal of and the interest on such revenue bonds as the same shall become
due and to provide reserves therefor, and (c) to provide a margin of
safety for making such payments. The Commission shall charge and col-
lect the rates, fees and charges so fixed or revised, and, except as herein-
after provided in this act, such rates, fees and charges shall not be subject
to supervision or regulation by any department, division, commission,
board, bureau or agency of the Commonwealth or of any district or other
political subdivision of the Commonwealth.

Such rates, fees and charges shall be just and equitable and may be
based or computed either upon the quantity of water used or upon the
number and size of sewer connections or upon the number and kind of
plumbing fixtures in use in the premises connected with the sewerage
system or upon the number or average number of persons residing or
working in or otherwise connected with such premises or upon the type
or character of such premises or upon any other factor affecting the use
of the facilities furnished or upon any combination of the foregoing
factors. Charges for services to premises, including services to manufac-
turing and industrial plants, obtaining all or a part of their water supply
from sources other than a public water system may be determined by
gauging or metering at the expense of the owner, tenant or occupant of
such premises or in any other manner as directed and approved by the
Commission. Premises not discharging the entire volume of water into
the sanitary sewers shall be allowed a reduction in the charges provided
the customer installs facilities, in a manner satisfactory to the Commis-
sion, for measuring the volume either discharged or not discharged into
the sanitary sewers.
The Commission shall fix and determine the time or times when and
the place or places where such rates, fees and charges shall be due and
payable and may require that such rates, fees and charges shall be paid
in advance for periods of not more than six months. A copy of the
schedules of all rates, fees and charges in effect shall at all times be kept
on file at the principal office of the Commission, and such schedules shall
at all reasonable times be open to public inspection.

In cases where the character of the sewage from any manufacturing
or industrial plant, building or premises is such that it imposes an
unreasonable burden upon any sewage disposal system, an additional
charge may be made therefor, or the Commission may, if it deems it
advisable, compel such manufacturing or industrial plant, building or
premises to treat such sewage in such manner as shall be specified by the
Commission before discharging such sewage into the sewerage system or
prohibit the discharge, directly or indirectly, of such sewage into the
sewerage system.

§ 23. Before any revision of the present schedule of rates, fees and
charges shall become effective the Commission shall publish a copy thereof
for four consecutive weeks in a newspaper of general circulation within
the District. If, on or before the last publication, the governing body of
any city or county constituting a part of the District or five hundred or
more qualified voters residing within the District shall file a petition with
the State Corporation Commission complaining of the proposed revision,
the State Corporation Commission may by order suspend the placing in
effect of such revision for a period not exceeding sixty days from the filing
of any such petition during which time it shall investigate whether such
revision is just and equitable and in accordance with the provisions of this
act. If the State Corporation Commission shall not enter an order sus-
pending, approving or disapproving such revision within sixty days from
the filing of any such petition, such revision shall be deemed to be in effect.
The Commission or the party or parties filing a petition may appeal to the
Supreme Court of Appeals from any such order as may be entered by the
State Corporation Commission in the manner provided by law.

§ 24. The owner, tenant, or occupant of each lot or parcel of land
within the District which abuts upon a street or other public way contain-
ing a sanitary sewer served or which may be served by a sewage disposal
system of the District and upon which lot or parcel a building shall have
been constructed for residential, commercial or industrial use, shall, if so
required by such reasonable rules and regulations as shall be promulgated
by the Commission, connect such building with such sanitary sewer, and
shall cease to use any other method for the disposal of sewage, sewage
waste or other polluting matter. All such connections shall be made in
accordance with rules and regulations which shall be adopted from time
to time by the Commission, which rules and regulations may provide for a
charge for making any such connection in such reasonable amount as the
Commission may fix and establish.

§ 25. In the event that the rates, fees or charges charged by the
Commission for the services and facilities of any sewage disposal system
or sewer improvements by or in connection with any real estate or other
property served shall not be paid as and when due, the owner, tenant or
occupant, as the case may be, of such property shall, until such rates, fees
and charges shall be paid, cease to dispose of sewage or industrial wastes
originating from or on such property by discharge thereof directly or
indirectly into the sewerage system, and if such owner, tenant or occupant
shall not cease such disposal within two months thereafter, it shall be the
duty of each county, city, town or other public corporation, board or body,
private corporation or person supplying water to or selling water for use
on, such property, within five days after receipt of notice of such facts
from the Commission to cease supplying water to, and selling water for
use On, such property. If such county, city, town or other public corpora-
tion, board or body, private corporation or person shall not within such
time cease supplying water to, and selling water for use on, such prop-
erty, the Commission may shut off the supply of water to such property
and may disconnect such property from such sewage disposal system or
sewer improvements, and for such purposes may enter on any lands,
waters and premises of such county, city, town or other public corporation,
board or body, private corporation or person.

If any rates, fees or charges for the services and facilities furnished
by any sewage disposal system or sewer improvements of the District shall
not be paid within thirty days after the same shall become due and pay-
able, the Commission may at the expiration of such thirty day period
proceed to recover the amount of any such delinquent rates, fees or
charges by any action, suit or proceeding permitted by law or in equity.

§ 26. The Commission shall keep and preserve a complete register,
or registers, open to public inspection, of all rates, fees and charges which
have been charged by the Commission to the owners, tenants or occupants
of any real estate for the use and services of any sewage disposal system
or sewer improvements and have become due and payable and have not
been paid. Such register or registers shall be kept in such place or places
as the Commission shall determine.

§ 27. The Commission and any county, city, town or other political
subdivision in whole or in part embraced within the District or any pri-
vately or publicly owned water company are authorized to enter into a con-
tract or contracts providing for the collection by such county, city, town or
political subdivision or privately or publicly owned water company and
payment over to the Commission of the rates, fees and charges charged by
the Commission against the owners, tenants or occupants of real estate
within such county, city, town or political subdivision or served by such
privately or publicly owned water company, or providing for the payment

the Commission by such county, city, town or political subdivision or
privately or publicly owned water company of a sum or sums of money in
lieu of all or part of the rates, fees and other charges which would other-
wise be charged by the Commission to the owners, tenants or occupants of
real estate within such county, city, town or political subdivision or served
by such privately or publicly owned water company. Such county, city,.
town or political subdivision or privately or publicly owned water com-
pany is vested with powers to do everything necessary or proper to carry
out and perform every such contract, including the same powers with
respect to rates, fees and other charges as are conferred by this act
upon the Commission. The Commission is authorized to reduce ratably in
accordance with such contract the rates, fees and other charges which
would otherwise be charged by the Commission to the owners, tenants or
occupants of real estate within such county, city, town or political sub-
division or served by such privately or publicly owned water company, but
nothing in this section or any such contract shall be construed to prevent
the Commission from charging to and collecting from such owners, tenants
or occupants of such real estate, in the same manner as provided for such
rates, fees and other charges, any deficiency in any payment agreed to be
made by such county, city, town or political subdivision or privately or
publicly owned water company.

§ 28. All revenues derived by the Commission from the sewage dis-
posal system or systems or sewer improvements financed or refinanced by
the bonds of any issue or issues, except such part thereof as may be
required to pay the cost of maintaining, repairing and operating such
system or systems or sewer improvements and to provide such reserves
therefor as may be provided in the resolution providing for the issuance
of such revenue bonds or in the trust agreement securing the same, shall
be set aside at such regular intervals as may be provided in such resolu-

pon or trust agreement and deposited to the credit of the following special
unds:

(a) a sinking fund which is hereby pledged to, and charged with,
the payment of the principal of and the interest on such bonds as the
same shall become due, and the redemption price or the purchase price of
bonds retired by call or purchase as therein provided, including the accu-
mulation of a reserve for such purposes; such pledge shall be valid and
binding from the time when the pledge is made, the revenues so pledged
and thereafter received by the Commission shall immediately be subject to
the lien of such pledge without any physical delivery thereof or further
act, and the lien of such pledge shall be valid and binding as against all
parties having claims of any kind in tort, contract or otherwise against the
Commission or the District, irrespective of whether such parties have
notice thereof; and

(b) a fund for anticipated renewals, replacements, extensions, addi-
tions and extraordinary repairs of the sewerage system.

The use and disposition of moneys to the credit of any such sinking
fund shall be subject to such regulations as may be provided in the reso-
lution authorizing the issuance of such revenue bonds or in the trust agree-
ment securing the same, and, except as may otherwise be provided in such
resolution or trust agreement, such sinking fund shall be a fund for the
benefit of such bonds without distinction or priority of one over another.

§ 29. All moneys received pursuant to the provisions of this act,
whether as proceeds from the sale of bonds or as revenues, shall be deemed
to be trust funds to be held and applied solely as provided in this act, and
none of such moneys shall be required to be paid into the State treasury
or into the treasury or to any officer of any county, city, town or other
political subdivision. The Commission may provide for the payment of the
proceeds of the sale of the bonds and the revenues to be received to a
trustee, which shall be any trust company or bank having the powers of
a trust company within or without the Commonwealth, which shall act as
trustee of the funds, and hold and apply the same to the purposes of this
act, subject to such regulations as this act and the Commission may pro-
vide. All such moneys shall be secured or shall be invested and reinvested,
all as may be provided by the Commission.

§ 30. Any holder of bonds issued under the provisions of this act or
of any of the coupons appertaining thereto, and the trustee under any
trust agreement, except to the extent the rights herein given may be
restricted by such trust agreement or by the resolution providing for the
issuance of such bonds, may either at law or in equity, by suit, action,
injunction, mandamus or other proceedings, protect and enforce any and
all rights under the laws of the Commonwealth or granted by this act or
under such trust agreement or such resolution and may enforce and compel
the performance of all duties required by this act or by such trust agree-
ment or resolution to be performed by the Commission or by any officer,
agent or employee thereof, including the fixing, charging and collecting
of rates, fees and charges for the services and facilities furnished by any
sewage disposal system or systems and any sewer improvements.

Such resolution or trust agreement may also provide for the appoint-
ment of a receiver in the event of a default, who may enter upon and
take possession of any facilities or property operated by the Commission,
any of the revenues from the operation of which are pledged for the
security of such bonds, and operate and maintain the same and fix, charge,
collect and receive all rates, fees and other charges and other revenues
thereafter arising from such operation in the same manner as the Com-
mission itself might do, and shall deposit all moneys collected in a separate
account and apply the same in accordance with the duties and contracts
of the Commission in such manner as the court appointing such receiver
shall direct. ,

§ 31. The exercise of the powers granted by this act shall be in all
respects for the benefit of the inhabitants of the Commonwealth and for
the promotion of their safety, health, welfare, convenience and prosperity,
and as the operation and maintenance of the sewerage system by the
Commission will constitute the performance of essential governmental
functions, the Commission shall not be required to pay any taxes or assess-
ments upon the sewerage system or any property acquired or used by the
Commission under the provisions of this act or upon the income there-
from; and the revenue bonds issued under the provisions of this act, their
transfer and the income therefrom, including any profit made on the sale
thereof, shall at all times be free and exempt from taxation by the Com-
pron weet and by any county, city, town or other political subdivision

ereof.

§ 32. The Commission shall have no power to mortgage, pledge,
encumber or otherwise dispose of any part of the sewerage system of the
District, except such part or parts thereof as may be no longer necessary
or useful for the purposes of the Commission. The provisions of this
section shall be deemed to constitute a contract with the holders of bonds
of the District. The sewerage system of the District shall be exempt from
any and all liability which may be incurred by, or imposed upon, the Com-
mission or any county, city, town or political subdivision.

§ 33. Any bonds issued pursuant to the authority of this act are
hereby made securities in which all public officers and public bodies of the
Commonwealth and all political subdivisions thereof, all insurance com-
panies, trust companies, banking associations, investment companies, exec-
utors, administrators, trustees and other fiduciaries, savings banks and
savings institutions, including savings and loan associations, in the Com-
monwealth, may properly and legally invest funds, including capital in
their control or belonging to them. Such bonds are hereby made securities
which may properly and legally be deposited with and received by any
Commonwealth or municipal officer or any agency or political subdivision
of the Commonwealth for any purpose for which the deposit of bonds or
obligations is now or may hereafter be authorized by law.

§ 34. The Commission shall keep and preserve complete and accurate
accounts and records of all moneys received and disbursed by it and of
all of its business and operations and of all property and funds owned or
managed by it or under its control, and shall prepare and transmit to the
Governor and to the governing body of each county, city and town which
is in whole or in part embraced within the District, annually and at such
other times as the Governor shall require, complete and accurate reports
as to the state and content of such accounts and records, together with
such information with respect thereto as the Governor may require.

§ 35. Any substantial change in the method used by the Commission
for treating and disposing of sewage and industrial wastes so as to prevent
the pollution of any waters within the District, shall, before being finally
adopted or used by the Commission, be approved by the State Health
Commissioner as effective and satisfactory for the purpose intended.

§ 36. Each county, city, town and other political subdivision in whole
or in part embraced within the District and each privately or publicly
owned water company shall, at the request of the Commission, make avail-
able to the Commission or the officers, agents or employees thereof, any or
all maps, plans, specifications, records, books, accounts or other data or
things deemed necessary by the Commission in the exercise of its powers
and duties under this act.

§ 37. Any county or city which shall have previously withdrawn
from the District shall, if requested by the Commission, provide by its
sewerage system for the treatment and disposal of sewage and industrial
wastes arising in or discharged from the District and shall agree with the
Commission to treat and dispose of such sewage and industrial wastes so
delivered at the cost of such treatment and disposal; provided, however,
the Commission shall pay to such county or city the cost of installing any
additional sewerage facilities necessitated thereby within such county
or city. If the parties do not agree upon such cost, such cost shall be
determined upon petition to the State Corporation Commission which is
hereby authorized and directed to make such determination.

§ 38. Each county, city, town or other political subdivision shall
promptly pay to the Commission all rates, fees and charges which the
Commission may charge to it as owner, tenant or occupant of real estate.
The Commission and any county, city, town or political subdivision in
whole or in part outside of the District are authorized to enter into con-
tracts providing for or relating to the treatment and disposal of sewage
or industrial wastes originating in such county, city, town or political su
division, by means of any sewage disposal system or such other facilities
as the Commission may determine to provide for such purpose, and such
county, city, town or political subdivision is authorized to do everything
necessary or proper to carry out and perform every such contract.

§ 39. The powers conferred by this act on counties, cities, towns
and political subdivisions are in addition and supplemental to the powers
conferred by any other law and may be exercised by resolution of the
governing bodies thereof without regard to the terms, conditions, require-
ments, restrictions or other provisions contained in any other law, general
or special, or in any charter, except that where rates, fees and charges are
fixed by a city or town, that power shall be exercised by ordinance.

§ 40. No county, city, town or other political subdivision or person
or corporation, public or private, shall discharge, or suffer to be dis-
charged, directly or indirectly into any waters within the District any
sewage, industrial wastes or other refuse which may or will cause or
contribute to pollution of any such waters.

No county, city, town or other political subdivision or person or
corporation, public or private, shall discharge, or suffer to be discharged,
directly or indirectly, into any sewage disposal system or any other
facilities of or provided by the Commission, any matter or thing which
is or may be injurious or deleterious to such sewage disposal system or
other facilities.

No county, city, town or other political subdivision or person or cor-
poration, public or private, shall plan, construct or place in service any
new sewer improvement in the District which will or may thereafter be
served by the Commission’s sewerage system and which will or may
thereafter, in the opinion of the Commission, cause overloading of the
sewerage system or the entrance into the sewerage system of excessive
ground or surface water or other matter or thing which is injurious or
deleterious to the sewerage system. In order to carry out the provisions
of this paragraph every county, city, town or other political subdivision
or person or corporation, public or private, if requested by the Commis-
sion to do so, shall furnish to the Commission plans and specifications
for such sewer improvements and shall provide access for Commission
inspection of all new sewer construction work as it proceeds and of all
construction records and materials used. In addition to other powers
granted the Commission, it shall have the right to refuse service to any
new sewer extension or improvement constructed or operated in vio-
lation of this paragraph.

§ 41. Any county, city, town or other political subdivision or person
or corporation, public or private, may be restrained, enjoined or other-
wise prevented from violating or continuing the violation of any provi-
sion of this act by injunction, mandamus or any other appropriate
remedy at law or in equity, by any court of competent jurisdiction, upon
action, bill, suit or other proceeding instituted by the Commission or by
any attorney for the Commonwealth. .

§ 42. No violation of any provision of this act shall be deemed to
occur by reason of the discharge of sewage from any boat or vessel
while afloat or on a marine railway or in dry dock.

§ 43. Any person violating any provision of this act shall be guilty
of a misdemeanor and upon conviction shall be punished accordingly. |

§ 44. No member, officer, agent or employee of the Commission
shall contract with the Commission or be interested, either directly or
indirectly, in any contract with the Commission, or in the sale of any
property, either real or personal, to the Commission. This section shall
not prevent any member, officer, agent or employee of the Commission
from granting to the Commission, for a nominal consideration, any right
of way, easement or lease.

§ 45. All construction contracts, except in cases of emergency,
over ten thousand dollars that the Commission may let for construction
or materials in connection with such construction shall be let after public
advertising. The Commission shall advertise for bids for the work or
materials at least ten days prior to the letting of any contracts therefor.
The advertisement shall state the place where bidders may examine the
plans and specifications and the time and place where bids for the work
or materials will be opened. Each bidder shall accompany his bid with
a certified check, payable to the Commission, for a reasonable sum to be
fixed by the Commission, as a guarantee that if the contract is awarded
to him, he will enter into a contract with the Commission for doing the
work or furnishing the materials. The contract shall be let to the lowest
responsible bidder, and the successful bidder shall give bond or other
security for the faithful performance of the contract, in such form and
amount as the Commission may require. The Commission is authorized
to reject any and all bids. In the event that all bids are rejected, the
Commission shall advertise for new bids as in the first instance. All bids
and contracts shall be public records. The Commission is authorized, in
its discretion, to do any and all such work by force account.

46. No pecuniary liability of any kind shall be imposed upon any
county, city, town or other political subdivision constituting any part of
the District because of any act, agreement, contract, tort, malfeasance,
misfeasance, or nonfeasance, by or on the part of the Commission, or
any member of the Commission, or any of its officers, agents and em-
ployees, except as otherwise provided in this act with reference to con-
tracts and agreements between the Commission and any county, city,
town or other political subdivision.

§ 47. The Commission is authorized to appoint all agents and em-
ployees of the Commission, dismiss them, fix their salaries or remuner-
ation, assign their positions and titles, define their respective powers and
duties, and require them or any of them to give bond payable to the
District in such penalty as shall be fixed by the Commission conditioned
upon the faithful discharge of their duties.

§ 48. The circuit court of the county or the corporation or circuit
court of the city in which any territory proposed to be added to the Dis-
trict is located, upon receipt of a petition of the Commission or a peti-
tion of the governing body of the territory proposed to be added to the
District or a petition signed by not less than twenty-five per centum
(25%) of the qualified voters residing within the limits of the territory
proposed to be added to the District, or a petition signed by the owners
of not less than twenty-five per centum (25%) by area of the real
property within the territory proposed to be added to the District, shall
enter an order fixing the date and hour and place for a public hearing
on the question of the addition of territory to the District, which order
shall set forth a copy of the petition, excluding signatures, and shall
describe the territory proposed to be added to the District.

A copy of such order shall be published once a week for three con-
secutive weeks in a newspaper of general circulation within the territory
proposed to be added to the District to be designated by such court and
posted in such public places within such territory as shall be designated
by such court. The first of such publications and such posting shall
occur not less than thirty days prior to the date fixed for such hearing.

At the time and place stated in such order, or to which an adjourn-
ment may be taken by the court, the court shall receive and hear any ob-
jections of interested persons to the addition of such territory to the
District or to any defect in the petition and the court may then or there-
after grant such petition with such modifications, if any, as it may deem
advisable and which do not enlarge the territory proposed to be added to
the District. All such objections shall be made in writing, in person or
by attorney, and filed with the court at or before the time or adjourned
time of such hearing. Any such objections not so made shall be considered
as waived.

If upon such hearing the court shall be of the opinion that any area
proposed to be added to the District will not be benefited by the District,
then said area shall not be included in the District. The order altering
the boundaries of and enlarging the District shall prescribe the territory
to be added to the District and fix the boundaries thereof.

From an order enlarging the District under the provisions of this
section an appeal shall lie to the Supreme Court of Appeals in the man-
ner provided by law.

If the city of Hampton, Newport News, Norfolk or South Norfolk
shall hereafter annex any territory not then within the District to said
city, such territory shall become a part of and be embraced within the
District at such time as such annexation shall become effective.

§ 49. Nothing in this act shall be construed to affect, impair,
repeal or supersede in any way the powers of the State Water Control
Board under the provisions of Chapter 2, Title 62, Code of Virginia,
1950, as amended.

§ 50. This act, being necessary for the welfare of the Common-
wealth and its inhabitants, shall be liberally construed to effect the pur-
poses thereof.

§ 51. If any one or more sections, clauses, sentences or parts of this
act shall be adjudged invalid, such judgment shall not affect, impair or
invalidate the remaining provisions thereof, but shall be confined in its
operation to the specific provisions held invalid, and the inapplicability or
invalidity of any section, clause, sentence or part of this act in one or
more instances or circumstances shall not be taken to affect or prejudice
in any way its applicability or validity in any other instance.

2. Chapter 407 of the Acts of Assembly of 1940, as amended by
Chapter 353 of the Acts of Assembly of 1946 and Chapter 471 of the Acts
of Assembly of 1956, and continued in effect by § 21-291, as amended, of
the Code of Virginia, is hereby repealed.

. All acts and parts of acts, general, special, private and local,
inconsistent with the provisions of this act, are hereby repealed to the
extent of such inconsistency.

4. An emergency exists and this act is in force from its passage.